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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Steven Bowen who wrote (3538)	1/24/1998 2:36:00 PM
From: Alejandro	Read Replies (1) \| Respond to of 12468

Steve: What list ? List of bidders ? ARTT is primarily a re-seller. All you would be buying is their licenses. How much ? ac

To: Steven Bowen who wrote (3538)	1/24/1998 5:00:00 PM
From: Bernard Levy	Read Replies (2) \| Respond to of 12468

Hi Steve: I generally agree with your calculations relating the LMDS licenses to the WCII licenses. However, I am slightly leery of linear interpolations based on the raw amount of bandwidth. As we all know, the value of houses does not vary linearly with square footage. For the case of WCII/TGNT versus LMDS, there exists a small difference between the range of services that can be offered by TGNT/WCII (telephony plus data), versus LMDS (add video). Right now, video is not worth much, but it might in the future. What I am trying to say is that the LMDS auction should not necessarily be viewed as a precise measure of dollars per bandwidth, but of dollars per services offered. Both WCII/TGNT and LMDS bidders face also an element of uncertainty, namely the possibility of future auctions in the 39GHz band. By the way, concerning Vogel's comments that the LMDS auction could be either postponed or voided, the postponement migh occur, but is not likely. On the other hand, the voiding of the auction would be an extraordinary decision that a federal court would be unlikely to make (in essence, it represents a judicial intervention in federal commerce). So if the auction takes place, expect that its results will stick. It would be more likely that the court would order the FCC to include RBOCs in future auctions, or even to conduct a special make-up auction (say with 39GHz licenses). Best regards, Bernard Levy